Administrative Receiverships

Administrative Receiverships

When a company has breached the rules of its borrowing it can be the final straw for many lenders who turn to Dains for help and advice on Administrative Receiverships.

An Administrative Receivership is when a company reneges on the terms of its borrowing from a creditor who has a floating charge. That creditor can then appoint Dains as an Administrative Receiver to recover the money which is due. Upon appointment, Dains has extensive powers to deal with the charged assets.

Within 28 days of appointment Dains will notify creditors of its appointment and hold a meeting of unsecured creditors within a period of three months. At the meeting a report is given on the events leading to the appointment, the carrying on of the business, disposal of assets, the amounts owing to creditors and how much, if anything, is likely to be available for distribution. A copy of the report is also sent to all known creditors.

It’s important to remember that the appointment of Dains as an Administrative Receiver does not prevent creditors from either continuing with or commencing any legal action against the company. This includes the petitioning for its liquidation. The Receivership is complete once the floating charge holder has been paid in full or when all of the assets have been sold and the proceeds distributed.

Martin FP Smith and Nicola J Meadows are licensed in the United Kingdom to act as Insolvency Practitioners by the Institute of Chartered Accountants in England and Wales. Furthermore, they are both bound by the Insolvency Code of Ethics when carrying out all professional work relating to an insolvency appointment. When acting as Receivers, Administrative Receivers or Administrators they act as agents only, without personal liability and when acting as Administrators, the affairs, business and property of the company are being managed by them.

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Registered office: The registered office is St. Johns Court, Wiltell Road, Lichfield, Staffordshire, WS14 9DS. Dains is a trading name of Dains LLP.

Legal Information

Dains LLP is a limited liability partnership registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales. Details about our audit registration can be viewed at www.auditregister.org.uk for the UK and www.cro.ie/auditors for Ireland, under reference number C001528129 and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales, number OC331125.